Components of the annual report for tenant-owner association

The annual report of a tenant-owner association consists of several mandatory components that together provide an overview of the association’s financial position, financial performance and governance. Below you can read about the different parts of the annual report, what they must contain and in which order they must be presented.

An annual report for a tenant-owner association must contain the following components, presented in this order:

1. the directors’ report
2. the income statement
3. the balance sheet
4. the cash flow statement
5. the notes.

Directors’ report

The directors’ report describes the most significant events during the past financial year and events that have occurred after the end of the financial year.

The directors’ report must include information that is not presented in the balance sheet, the income statement or the notes, but that is important for assessing the association’s financial position and financial performance. In addition, certain other statutory information must be provided, such as the board’s proposal for the appropriation of profit or loss.

Income statement

An income statement must provide an overview of how the financial performance of the operations has developed during the financial year. The income statement shows, among other things, a summary of all the association’s income and expenses.

Balance sheet

A balance sheet must provide an overview of the association’s financial position on the balance sheet date, which is the last day of the financial year.

Cash flow statement

The cash flow statement must report the association’s cash receipts and cash payments during the financial year.

Notes

In the supplementary disclosures, the notes, the association may specify and explain the content of the income statement and the balance sheet.

Read more at the Swedish Accounting Standards Board (Bokföringsnämnden)

You can read more, in Swedish, about what the directors’ report, the income statement, the balance sheet, the cash flow statement and the notes must contain in the Swedish Accounting Standards Board’s guidance documents Annual Reports in Smaller Entities (K2) and Annual Reports and Consolidated Accounts (K3) (Bokföringsnämnden) External link..

Audit report

A tenant-owner association must submit an audit report together with the annual report. The audit report is a written document in which the auditor expresses an opinion on the annual report prepared by the association. The audit report must be submitted to the board of the association no later than three weeks before the general meeting of the association.

The exact content of an audit report is set out in the Economic Associations Act. Below are examples of information that the auditor must include:

• confirmation that the annual report complies with the applicable Annual Accounts Act
• whether the auditor considers that the general meeting of the association should adopt the income statement and the balance sheet and, where applicable, the group income statement and group balance sheet
• the auditor’s opinion on how the general meeting of the association should decide on the board’s proposal for the appropriation of profit or loss
• whether the auditor considers that the general meeting of the association should grant discharge from liability to the board.

The audit report must also include the following information:

• the financial period to which the audit report relates
• the name and registration number of the tenant-owner association
• the date on which the audit was completed.

The auditor must also sign the annual report and state that an audit report has been prepared. This is known as the auditor’s endorsement and is usually placed in connection with the board’s signatures.

Dating

When the annual report has been prepared and the board agrees on its content, it must be dated. This requirement applies in addition to the requirement to state the date on which the annual report is signed.

The annual report must therefore contain both:

• the date on which it was prepared, and
• the date on which it was signed.

The requirement to date the annual report applies to financial years that begin on 1 July 2024 or later.

Signatures

• The annual report must be signed by all members of the board.
• A board member may not refuse to sign the annual report. If a board member has a dissenting opinion, the person must still sign the annual report. If the dissenting opinion has been recorded in the minutes of a board meeting, the minutes must be submitted together with the annual report.
• A board member may not authorise another person to sign the annual report on their behalf.
• Each signature must be accompanied by a printed name and the date.
• If a deputy board member replaces a board member when signing, it must be stated that the person has signed in their capacity as a deputy board member.

Financial statements approval

On the certified copy of the annual report, a board member must provide a financial statements approval stating that the income statement and the balance sheet were adopted at the general meeting of the association. The signature on the certificate must be an original signature. The date of the general meeting must be stated and may not be earlier than the date of the audit report.

The certificate must also include information on the decision of the general meeting regarding the total profit or loss.